8. John's utility function for cola and hamburgers is given by U(C,H)=C 1/3H 2/3 , where C

and H are, respectively, the cans of cola and the number of hamburgers he consumes.

Draw two of his indifference curves with H on the vertical axes.

a) Draw two of his indifference curves with with H on the vertical axes.

b) What is his marginal rate of substitution of hamburgers for cola MRSHC=-dH/dC?

Does MRSHC depend on how much of the goods he consumes? What happens to

MRSCH as he has more and more colas?

c) Suppose that the price of a can of cola is $1, the price of a hamburger is $3, and

John's income is $27. Draw his budget line.

d) Find John's optimal consumption bundle.

e) Suppose that price of a can of cola is $2, the price of a hamburger is $6, and John's

income is $54. Draw his budget line, and find the optimal bundle.